MultiChoice Group appears to be warming significantly to the idea of a buyout by Canal+, as news emerges that the French firm has bought even more shares in the JSE-listed broadcaster in recent weeks.

MultiChoice told investors on Monday that it has agreed to work closely with Canal+ on a mandatory offer the latter must make to the former’s shareholders. This is after Canal+ triggered a mandatory offer under South African rules by acquiring more than 35% of MultiChoice’s equity earlier this year.

The “cooperation agreement” will see the two broadcasting giants using “reasonable endeavours to cooperate in relation to the offer, including in relation to the fulfilment of the offer conditions and the publication of a combined offer circular”, MultiChoice said.

Canal+ has also continued to buy up MultiChoice shares in the open market, with its stake now standing at 36.6%.

Canal+ has said previously that it will offer MultiChoice shareholders R125/share in cash, which is “significantly above the minimum price of about R105 required by the takeover regulations”, the JSE-listed broadcaster said.

If the deal hasn’t been consummated by 8 April 2025 – including securing the necessary regulatory approvals, which could still prove to be the biggest stumbling block to a transaction – then it could be terminated. This “long-stop date” can, however, be extended, with the concurrence of South Africa’s Takeover Regulation Panel, a financial regulator that is overseeing the mandatory offer.

As part of the process, and as required in law, MultiChoice has also constituted an independent board to express a view on the fairness and reasonableness of the Canal+ offer.

Delisting?

If the deal goes ahead, MultiChoice could be delisted from the JSE – and this would mark another blow to South Africa’s largest stock exchange, which has seen many companies opting to go private in recent years.

If Canal+’s offer is accepted by shareholders with at least 90% of eligible MultiChoice shares, then the French firm has reserved the right to delist MultiChoice from the JSE. At the same time, though, Canal+ has said there is an opportunity, potentially, for South African investors to participate in its own proposed listing in Europe.

“Canal+ intends that, should its planned European listing proceed, there will be an opportunity for South African investors to become shareholders of the combined entity as part of a secondary inward listing on the JSE.

“In particular, if Canal+’s listing occurs prior to the offer closing, Canal+ will consider revising the terms of the offer and extending to MultiChoice shareholders an opportunity to have exposure to the combined group through this listing.”